MTY Food Group (TSX:MTY) is a Montreal-based company that operates as a franchisor in the quick service and casual dining industry in North America and around the world. Some of its top franchises include Country Style, Thai Express, Extreme Pita, and Tiki Ming.
Its shares have dropped 10% over the past month as of close on February 25.
The company released its fourth-quarter and full-year results for 2019 this month. Its Q4 profit rose to $20.7 million compared to $13.2 million in the prior year.
MTY Food Group has denied allegations from an employee that it had delayed the release of its quarterly earnings.
System sales in Q4 2019 increased to $1.02 billion, which was up from $706.4 million in Q4 2018. Its sales were powered by the acquisition of the Papa Murphy’s chain. Same-store sales increased 1.5% year over year.
Value investors should be paying attention as the company has taken a hit due to these allegations and from broader turbulence in the stock market.
The stock last possessed a favourable price-to-earnings ratio of 19 and a price-to-book value of 2.0. Shares fell into technically oversold territory late last week, but its RSI has since rebounded to neutral levels.
MTY Food Group stock last paid out a quarterly dividend of $0.185 per share. This represents a modest 1.3% yield. The stock is still trading near a 52-week low, and I like it as a buy-the-dip opportunity in late February.
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